AUSTRALIAN WEEKLY MARKET REPORT
Comment
Another extraordinary market reaction this week. While the new level of price is concerning enough, the direction it’s taken to arrive at this point has been extreme. Surely the appetite for wool has not changed that much in such a short period. Confusion is wide spread and confidence within the market is low and not until we get to a level that extracts more widespread interest will we see a reaction. Reports are that there is business but while the market falls, the next level is always lower. How long can this last? All markets react strongly after up and down corrections and we expect this to be no different. But when and from what level? Industry participants with some necessity for wool will be monitoring the next move very carefully.
Crossbred types appear in favour and only minor changes were noted from 26.0 / 32.0 micron.
AWEX Eastern Indicator compared with 23/08/2019
Eastern Indicator
Close: 1375
Change in % -8.15
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
15 Micron
Close: 2431
Change in %: +0.45
16 Micron
Close: 2118
Change in %: -1.44
17 Micron
Close: 2007
Change in %: -3.97
18 Micron
Close: 1932
Change in %: -4.92
19 Micron
Close: 1804
Change in %: -5.85
Authentico Indicator
Close: 2029
Change in %: -3.38
Forecast
We’ll try to focus on the positives from a negative sale week. 15.0/16.0 micron were much less affected than the broader Chinese qualities. This was a superfine sale in Sydney and the result was positive. Of particular note was the market for non mulesed types. Our own Authentico Index was only 3.38% down for the week compared to an AWEX EMI which fell 8.15%. Our index is influenced by the performance of the finer micron (15.0 and 16.0) types that are important to our clients. The AWEX EMI includes wool down to 16.5 micron average only. We hope that this new Indicator and our Authentico indexes are of value to the industry.
Auction offering – current week
Selling Centres for week 09
Market Sale Offered Sold Passed In
North S 09 6951 4801 30.9%
South M 09 11453 8200 28.4%
West F 09 6891 3854 44.1%
Auction offering – next week
Market Sale Sale days Volume
North S 10 W-T 8885
South M 10 W-T 15718
West F 10 W 4458
If you want to see the complete Wool Sales Roster click here.